What is Guaranteed Universal Life (GUL)?
Guaranteed Universal Life (GUL) is a unique form of permanent life insurance that combines features of both Term Life Insurance and Whole Life Insurance. Unlike other forms of universal life insurance, GUL focuses on providing a guaranteed death benefit for the policyholder’s entire life, often at a lower cost because it typically does not emphasize cash value accumulation.
The premiums for GUL are usually fixed, and as long as they are paid on time, the policy guarantees a death benefit to the beneficiaries. This makes GUL a popular choice for individuals seeking affordable lifetime coverage with guaranteed payouts. The emphasis is on maintaining coverage up to a specified age (e.g., 90, 100, or 121 years), offering a straightforward life insurance solution for those who do not need a cash accumulation feature.
For example, a person purchasing a GUL policy for $250,000 in coverage at a lower premium might not see cash value build-up, but they are assured that the death benefit will be paid as long as the premium conditions are met. This makes GUL an attractive option for those who want certainty and protection without the higher costs associated with traditional whole life insurance policies.
Guaranteed Universal Life is ideal for individuals who desire permanent coverage without the investment component, focusing on a stable, long-term death benefit for their loved ones.